Backing the promise of capital gains whilst seeing a yield of around 4% seems order of business.
Not my idea of making money.
Investors keep first-timers out of market
- Thread starter MsAli
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Backing the promise of capital gains whilst seeing a yield of around 4% seems order of business.
Not my idea of making money.
Nothing wrong with the sticks, assuming you can find work there or your prepared to travel daily.
Do investors have easier access to money that FHB don't? Is this a special loan product for investors only that I don't know about?
Sorry, I was editing that post while you were typing.
Wasn't clear in what I was saying.
The article highlights a very real problem in Australia, ttens if not hundreds of thousands of people are still renting because of pro speculation taxation laws which put the home buyer at an unfair disadvantage. Home buyers miss out like this a lot, I've seen it.
A solution would be to remove negative gearing on existing properties (keep for new developments only) and eliminate all land tax thresholds.
A solution would be to remove negative gearing on existing properties (keep for new developments only) and eliminate all land tax thresholds.
The article highlights a very real problem in Australia, ttens if not hundreds of thousands of people are still renting because of pro speculation taxation laws which put the home buyer at an unfair disadvantage. Home buyers miss out like this a lot, I've seen it.
A solution would be to remove negative gearing on existing properties (keep for new developments only) and eliminate all land tax thresholds.[/QUOTE
I hope your wearing a flame proof suit!
What I've come to notice about this forum is that there are a lot of what I call younger folk who come on here and talk about how bad it all is right now, like it jumped up and appeared today....
Having to live out in the sticks and commute, too expensive, investors gazumping them at the 11th hour and so on.
It didn't.
The same rules have been in place for buying and investing in property for most of my life at least.
Investors are the smallest percentage of all homes bought, and investors are not in the business of paying above the odds for a place.
They want to pay less just like everyone else, but an emotional PPoR buyer will often pay more than others..
An important factor in the success of many auctions is the emotional PPoR buyer/s.
So, can all you younger folk who haven't seen what has been happening for the last 40 or more years please give it up?
Oh yeah..well said Bayview !
The FHB we sold to today were coming off being edged out of another deal that saw two other FBH'ers facing off over a property in a street behind our IP.
Behind meaning not as well located.
Another eg, next door to another IP of ours, was sold just hours after listing when 2 FHB'ers were going hammer and tongs at each other pushing the price from asking price of $349k to sale at $370k...!
Not an investor in sight when price is pushed to the limit in these cases and many others we have found lately on the Central Coast NSW.
The FHB we sold to today were coming off being edged out of another deal that saw two other FBH'ers facing off over a property in a street behind our IP.
Behind meaning not as well located.
Another eg, next door to another IP of ours, was sold just hours after listing when 2 FHB'ers were going hammer and tongs at each other pushing the price from asking price of $349k to sale at $370k...!
Not an investor in sight when price is pushed to the limit in these cases and many others we have found lately on the Central Coast NSW.
Investors buy more than double the amount first home buyers do, and they are also often driven by powerful emotion (greed) so are a strong force pushing prices up, more so than ever. Just because a problem has been around a while and is now getting much worse doesn't mean it should be ignored.
btw I've bought and sold quite a few properties.
There's always something. Not long ago, we sold an IP to a young couple (double income) who were FHB (Yay! Good for them!) They edged-out another young man (single income) who simply couldn't come up with more money than the successful purchasers were prepared to pay. Apparently he had a bit of a whinge to the real estate agent about the buyers with a 'double income' who kept beating him at offers and how it 'wasn't fair' . Wonder if he's found a partner yet...
. Wonder if he's found a partner yet...Moreso with PPOR's, but i recall always wanting the best i could get for what i had to spend.
That meant looking at properties which were at the top end of my budget so missing out on some was to be expected.
There will always be others with a bit more money and who are willing to pay more for the right property - that can be anywhere btw, not just PP.
Not sure why this is even a story?
That meant looking at properties which were at the top end of my budget so missing out on some was to be expected.
There will always be others with a bit more money and who are willing to pay more for the right property - that can be anywhere btw, not just PP.
Not sure why this is even a story?
Let's face it, we all need to have a bit of a whinge. If it isn't FHOB being locked out of the market because of low value of the FHOB grant, it'll be investors whinging about how big the grant is and how it is making investing unviable or a combination of these complaining about dinks having greater borrowing capacity forcing the properties out of their reach.
"OK Gina, you are higher up on the BRW list than I", says Andrew Forrest.
The problem hasn't been ignored - and it has been around for generations - that property is just too damn expensive, right?
It was there when I bought my first property as a 25 year old back in the mid-80's...I wanted to buy a mansion in Brighton, but had to settle for a triple fronted orange brick disaster in Boronia. Life's so unfair.
Maybe if I had saved more money when I stared working as a younger man - instead of spending it on golf clubs and night clubs and clothes, I might have been able to buy the worst house in Brighton and do it up and make a packet. I didn't have that knowledge back then, sadly.
The Gubbmint has tried to solve the problem at least twice - removed the neg gearing back in the '80's, and more recently the FHB grants....$15 grand; if you don't mind.
All that did was push up the prices of the cheaper end homes etc.
So, if that's the case; the FHB's should have been able to compete with the investors, and/or edge them out.
It hasn't worked and never will because there is always someone out there with deeper pockets who is prepared to spend it on the better positions and better houses.
A FHB couple with duel income will blow a single FHB out of the water most times, unless the single FHB is a very high income earner - a minority demographic across the planet as we all know.
Just last week, here in my little backwater, someone paid $700k for a knockdown '50's beach shack just back in from the beach a few houses down a side street.
You can buy a decent three bedder PPoR type dwelling in the same suburb for about $400k.
So, why would someone spend $700k on a knockdown?
Brilliant position is the main thing - very close to beach and shops...everyone wants that.
The other thing is the zoning - zoned for multiple dwellings on the site. My money is on three town houses, but it may still end up as a million-plus house. (Far less likely unfortunately - given the pattern of that location over recent years).